Hawaii Tax Guide
11%top marginal rate
Hawaii has the second-highest state income tax rate in the nation at 11%, but the lowest property taxes in the country. The General Excise Tax functions differently from a traditional sales tax. Hawaii also has an estate tax.
Hawaii Tax at a Glance
Income Tax
11%
Top marginal rate
Sales Tax
4%
State-level rate
Property Tax
0.28%
75% below the national average
Estate Tax
Yes
State-level estate/inheritance tax
How Hawaii Compares to the National Average
Notable Tax Facts
- Second-highest income tax rate in the US at 11%
- Lowest effective property tax rate in the nation at ~0.28%
- The General Excise Tax (GET) is technically a business tax, not a sales tax, but is passed to consumers
- Has a state estate tax with a $5.49 million exemption
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Hawaii Tax FAQ
What is Hawaii's income tax rate?
Hawaii has a progressive income tax with 12 brackets ranging from 1.4% to 11%. The top rate of 11% is the second highest in the US, behind California's 13.3%.
Does Hawaii have a sales tax?
Hawaii has a 4% General Excise Tax (GET) rather than a traditional sales tax. The GET applies more broadly than most sales taxes, covering services and business-to-business transactions.
Why are Hawaii property taxes so low?
Hawaii's unique property classification system and home exemptions keep effective rates around 0.28%, the lowest in the nation. However, high home values mean absolute dollar amounts can still be significant.
Does Hawaii have an estate tax?
Yes. Hawaii has a state estate tax with an exemption of $5.49 million. Rates range from 10% to 20% on estates exceeding the exemption.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.